Communicating total rewards to your people can sound like an intimidating and confusing process. But since the New Year is a time for change and newness, it is a good time to start by aligning total rewards with your organizational goals and employee expectations.
A Total Rewards Calendar can go a long way toward helping you stay on top of things and giving employees clarity on what to expect when. By defining the key dates/times during the year when compensation activities happen, you can engage and motivate people.
In addition to helping you manage compensation and rewards better, it also strengthens the Wx.
The key elements that you can build into the first half of your year are:
- Employee Listening: Begin the year by listening to what your people value. Conduct surveys, focus groups, and 1:1 discussions to decode what needs to be included to have a more people-centric rewards strategy.
- Defining Pay Strategy: Based on your business goals, outline your stance and define what you want to pay for (such as performance, competence, or tenure). Clarify the principles that guide pay increases, bonuses, and market linkages of pay.
- Total Rewards Pay Benchmarking: Regularly compare your pay ranges through pay surveys, against industry competitors to ensure that you are competitive. This helps in attracting and retaining talent and justifying pay structures both internally and externally.
- Link Performance Outcomes with Pay: Integrate performance management with Total Rewards and define how performance/competence will lead to merit increases, bonuses, and promotions, ensuring a meritocratic and motivating work environment.
- Pay Design: Develop or maintain pay ranges to reflect current market trends, organizational changes, pay fairness, and equity considerations, while accommodating your budget. In addition, design incentives and benefits that not only attract talent but also boost long-term retention and employee well-being.
Once you have been able to set a strong foundation, you can plan for the rest of the year. Budget for merit increases and outline your financial commitments to share your success as a company with your people.
Institutionalize your recognition and developmental interventions to help your people feel valued and respected.
In addition, focus on transparent and clear communication. Train your managers to approach pay conversations with sensitivity, tact, and authenticity. Also, guide your people to make the most of their pay and benefits. Help them understand the value they can gain from their total rewards.
Through systematic planning of each of these components in your Total Rewards Calendar, you can set the tone for a year of strategic compensation management and drive progress.
